MAAHARSHI DAyA NAND )

Unt vERSITY
ROHTAK
Inves ment Management

Topic Risk (Risk Anelyaia) C

ut 2nd)
Submutted by
Rubal sha7ma Sub mitted tu
HuA 23 CenN Ishu znd
Roll lo- 752
 Risk
an ntegal
Risk ano uneerutainty cvne

Part o an nvestment decisi om

be deti nod
Technicalld hene usl Can

the ossiLle Conged utn ce

as

Solutions
o Hhe deci'stn tha b e taken
a kndon Uhcetaf'nty i 9erneally

delined Jo athl to Situatony hou

he Pob abi litic Can not be eotmated

ano Risk and heertaunty ae wed

interchang eable
he olemano tha
Risk tomboseo of
n VariaionD in Jwtwin oo înpma
tn tome.
bung
the main fonces tonhibuting uok an

Pouce and inteneot. Risk cuscus o

inluenced by exhenna an nchena
Con sidemahons
6xena Risks Ce unConto |lab ke cnbroody
tee nveot ments thee ane Jhe
.

CU Calle Systmatc eisk)

 Risk cue o int enal envistonment o q

finm 0 hos e aybs ecling aPeorticularu

ndsty nebevnee to a unsystmetie

Systumatic Risk
Syslem atic eisk in non - diveus Miabl qnd
h the Secwu he motket
associ otoo
the etonomic
a wel CUD So calo qical
Poiical and Con sielei oubron aal
o he secwuh'e n he
Pu ce
ELono my Th ebec othese factoma
t put pneuwne on cll ecwih o
Such a wa that the rice cl
Sto ck will movt i the Same din ech'n

y s t mah'c usk oVU m auet Ju

()Intenest nata
(3) Punchasing fow er Risk

Theydematie incuol9
Enplain.
 Manket, ntenet 1te usk anod futchas/nq
Poto o Risk cne
o ubed undeL ysêmah,

R'sk.
( MAR KGsT RISK
Sowre Risk
Martket isk neevLo.od tock
vauabily due o changes nnves doo' s
ottitudc C nd exbeehono
TKe Thveos 3e neation to wano angil
ctnd int angilu evento h chie Caurr
atb ecting Harket eisk. he fust Se,
that the tangiblu event , hts a l
bans but the intangbl even cn

bcneo on CA 'sahodo qical bass o

eachonm exectahons 0 ealtis

Maket is tiggen off threugh e

event Com im Poical Soual onc
ee onome Aason he Iniial decine o7

market Psuce will CCrat

CAn emo hon instabiliy invcsro n
Couune a a o loss 07 C1Cailu an undue (ondenre.
 lolytcati on Pisko
Systemaié UnsystLmatie

ExtonalEnvinonment ntenal puly

pisl inem PiM
Maket et pis |c
2finana'nlpiskk
2Inteiest Rat Psl
)Punchsainq Poweot Pik

RGST RAfE Rsl -

INTE
hene au tow b e move ments
suiees tockon the Larket
Thee ma be emeo
(D Jo ngteim
b) cy clica
) Inhe1 modi at
) Shorut tem

the hue hen

The Pruk e 3ecwu
Heyjele on an anvertmen- nd
the lue tuathons n ouce
Shote-lenn nteet Iátu lutuat
cu C reat pecd a n mo re
rolai le
+han donq - teim secwdhe but th honq e
have 9 Similav ebee uce
I Snteteat 1att Could be cakulated
and fone cayteol aCc wately inv en tons
oold bbu no Sel Aecwuu'hhe w
tongrdence
PURCHA SI NG Poto 6R RISl-

Pusncho bw en Jusk so Rnoon

nlaion Psl Thi uisk autM out
an h e
hangt
Sties and tech nu'call tCoveus boh

nlaion Cnd lelat m Perdooly

Dwun the at too cl ecad e has

been 5-een that

nlahma P>ewy
hqve been tontinuousy fectin4 the
nelam ecoNomy

Al nw ejdun s houlo hAve cn Approxi mat

estimatu n hevi munch beheve nvephng

Hhei funolo ohe expated retwin a f r

l ! owqnne or Pw1chain owen Ro

mainn cn
* Unsysumatic Risk
unsysfemaio ual aie
he mbottanee
uncotun Swtoundmg4
ou of the
ou teconu)
Parlucula im 0T ine utry

ik Lab ow 6tn Consumut be ference

CAno Manaqeme nt Pi cies

the
Thene u n c e t a n i e ollneetly afbaet
n u ) w n m entt
imanng and
of the rm nsystmetic
Can OLonin To there longiel erlahons ,

be Conplement the

visk once

BuSIN ESS RISK

Conbotat ong n Setion has u
Gve
OLon obyeetives cna eqpaly qnel cum

at Payti uular gom Po1of?tano

oportng nco me c nol edso expech
'ovide Cota'n eve oLOvdent
Inome t shoteololest,
13unes eyclei
Some nd woma move Qtomati cal ith
move Coute -

heun| neo Cycl, othirs

cyelieally
b) Demoqreabhic facto/s Populahin
hn
Such raphical elisti buhon
geg
and aee.

C) Poitical Poicien
in deeislons t-opklin o Stat
Chang t ,

govern ment t extent afhect tha

some

nd wtry
Honetwy folky
Resenve onk indug 's folicie Loih negand
MOnetay ane-sca! licre may also
d
abaet hevenl throgh an esect on ost

a Loel a avai labLy fund

Economics envionmentof the £tono my

(e) The
also the tm and tost and
gnluence
Revene
tna Buninenisk Cm be dentiheol thouh
he Aise an decline doa Aevenut
a ndicateo m the ti'ns e n i s before
interet ano taxt.
5) fINANCIAL RIsk

inaneial ise eompans S Mo Ciated

Leth he thod thuoh Jshith
Plans tfinaueia
Plans utw Hha
ha
Capila suetuue C Combny tend
t ma |re e aunings uns
table, h (phpon
o ail mauein

inaneielly Juusk ano businem v anu

omeshat elstoel hite businesiskk
Concenneo m am en
slypin af Hh
n Come 3temenh betweern revenus
A

and aninas Bego re

Andeus+ and taxe
erH (EISIT Ananaial RLslk Can be
,
stated
o bang betwee foif qn éanin
behore<ye nevenmu CostE
ane epIT aim wvouable.
hat thune neM
nod ths mounb des1Aable
 Stust m , bo1OLed fun cl an mag n
ise eci alla unPn-i+cbls y can.
meawnt Jsk an nvey dor shoul
nd etand the fact that uok
Cannot be meadweo accwatt ph'nstn

analyst hust be Veu eauh'ons hla

makin Phe diehons b ecame m U H

clebend dn Phe oi ch' a

The cuantigication uis enww Comparson

C wel! aD unboruy n meAs wmentF.

gnauysu Cn 9 ndupretah om .,

elimatt qu D Cne h un chey

meRsWL MUNt in possbl by

out he olileunee betuwe en

finding
atual Jedw n ano e t mate tun n ,

he dnolsim aoun hee

tha
Expeche nn.